Length doesn't matter to me I would prefer spend my time cherry picking thru the loans borrower info.
Printable View
hammered by bad loans today - 5 loans written off today so far. Will be interesting to see what that does to my RAR which will be published soon, I presume. Hopefully the new calculation takes these write offs into account.
I had, perhaps wrongly, the opposite view. I assumed that if the average time to failure was 1 year then you would be best to have short duration loans as you would have received 1/3rd of the repayments before it went bad, vs only 1/6th Is my reasoning incorrect? With that in mind I have only invested in 36 month loans.
As everyone is publishing their performance I thought I would share mine. I have only invested in A or B grade loans, always 36 months. Never for anyone over 50, never for business loans or cars or loans to family. Never invested in a rewrite - my philosophy being that if they are the type of person who keeps digging themselves into debt then they aren't truly trying to improve their debt position. To date I haven't had a single write off (touch wood). But I have WAAAY less invested than many others here.
Does anyone else get this following little quirk sometimes when Withdrawing funds from your HM account?
After completing a Withdrawl and taking out ALL availble shown funds.... ( leaving zero funds behind )
Afterwards, you are then shown even more funds still in your account available to still be withdrawn?
This can go on for 2 to 4 Withdrawls before you do finally get to getting to a Zero funds balance ....
I've not said anythng here, before but it still happen 3 or 4 times a week!
The way I see it: Assuming loss is after 1 year and assuming you re-invested in another 3 year loan your chances of getting a write-off increase (you pass the 1 year mark more often over time). Crudely, 67% x (5/3) > 80%. But I think you can be too picky given the scarcity of loans as the risk of lack of diversification is the biggest issue. If you have not had any charge-offs it may be because you lack sufficient diversification....